Another "Unplanned Supply Outage" for oil
Posted: Thu Apr 25, 2019 11:28 am
MOSCOW, April 25 (Reuters) - Poland and Germany have suspended imports of Russian oil via a major pipeline, citing poor quality and triggering a rare crisis over supply from the world’s second-largest crude exporter.
Halting imports from the Druzhba pipeline could trigger legal claims by Western buyers against Russian suppliers, who would in turn seek compensation from Russian pipeline monopoly Transneft, three traders with Western buyers said.
The suspension cuts off a major supply route for Polish refineries owned by Poland’s PKN Orlen and Grupa Lotos , as well as plants in Germany owned by Total , Shell, Eni and Rosneft. Halting supplies of tainted oil, which can corrode refining units, has pushed some refiners to find other supplies. But alternative routes cannot fully fill the shortfall.
The quality issue helped drive oil prices above $75 a barrel for the first time this year on Thursday.
Russia said it planned to start pumping clean fuel to Europe through the pipeline on April 29.
Read more: https://www.reuters.com/article/russia- ... SL5N2270WR
Halting imports from the Druzhba pipeline could trigger legal claims by Western buyers against Russian suppliers, who would in turn seek compensation from Russian pipeline monopoly Transneft, three traders with Western buyers said.
The suspension cuts off a major supply route for Polish refineries owned by Poland’s PKN Orlen and Grupa Lotos , as well as plants in Germany owned by Total , Shell, Eni and Rosneft. Halting supplies of tainted oil, which can corrode refining units, has pushed some refiners to find other supplies. But alternative routes cannot fully fill the shortfall.
The quality issue helped drive oil prices above $75 a barrel for the first time this year on Thursday.
Russia said it planned to start pumping clean fuel to Europe through the pipeline on April 29.
Read more: https://www.reuters.com/article/russia- ... SL5N2270WR